S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6883
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 20, 2021
                                ___________
 
 Introduced  by  Sen. JACKSON -- (at request of the NYC Office of Manage-
   ment and Budget) -- read twice and ordered printed, and  when  printed
   to be committed to the Committee on Local Government
 
 AN  ACT  to  amend  the local finance law and chapter 419 of the laws of
   1991, amending the local  finance  law  and  other  laws  relating  to
   providing  relief  to  local governments for certain mandated programs
   and services, in relation to local government borrowing practices  and
   mandate relief
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph b of section 21.00 of the local finance  law,  as
 amended  by  chapter  113  of  the  laws  of 2018, is amended to read as
 follows:
   b. Serial  bonds  shall  mature  in  annual  installments.  The  first
 installment  shall  mature not later than eighteen months after the date
 of such bonds or two years after the date of the first bond anticipation
 note or notes issued in anticipation of such  bonds,  whichever  is  the
 earlier,  provided,  however,  that  until  July fifteenth, two thousand
 [twenty-one] TWENTY-FOUR, the first installment shall mature  not  later
 than  two years after the date of such bonds or two years after the date
 of the first bond anticipation note or notes issued in  anticipation  of
 such  bonds,  whichever  is  the  earlier. However, if bond anticipation
 notes are issued in anticipation of bonds and if a portion of such notes
 or the renewals thereof are  redeemed  from  a  source  other  than  the
 proceeds  of such bonds within two years from the date of the first such
 note or notes and a further portion thereof shall be so  redeemed  prior
 to  the  termination  of  each twelve months' period succeeding the date
 such original portion was so redeemed, the  first  installment  of  such
 bonds  may,  in  the  alternative, be made to mature not later than five
 years from the date of the first such note or notes.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10356-01-1
              

 S. 6883                             2
 
   § 2. Paragraph b of section 53.00 of the local finance law, as amended
 by chapter 113 of the laws of 2018, is amended to read as follows:
   b.  If  such  bonds or notes are payable in installments, the install-
 ments remaining unpaid may be called for  redemption  only  (i)  in  the
 inverse order of their maturity or, (ii) in equal proportionate amounts;
 provided,  however,  that  for  bonds  issued during the one-year period
 commencing July first, nineteen  hundred  eighty-eight,  and  for  bonds
 issued  during  the  one-year  period  commencing  July  first, nineteen
 hundred eighty-nine, and for bonds issued  during  the  one-year  period
 commencing  July  first,  nineteen  hundred ninety, and for bonds issued
 during the three-year period commencing  July  first,  nineteen  hundred
 ninety-one,  and  for  bonds  issued  during the period from July first,
 nineteen hundred ninety-four up  until  and  including  July  fifteenth,
 nineteen  hundred  ninety-seven  and  for bonds issued during the period
 from July fifteenth, nineteen hundred ninety-seven up until and  includ-
 ing July fifteenth, two thousand, and for bonds issued during the period
 from July fifteenth, two thousand up until and including July fifteenth,
 two  thousand  three,  and  for bonds issued during the period from July
 fifteenth, two thousand three up until and including July fifteenth, two
 thousand  six,  and  for  bonds  issued  during  the  period  from  July
 fifteenth,  two  thousand six up until and including July fifteenth, two
 thousand nine,  and  for  bonds  issued  during  the  period  from  July
 fifteenth,  two  thousand six up until and including July fifteenth, two
 thousand twelve, and for  bonds  issued  during  the  period  from  July
 fifteenth,  two thousand nine up until and including July fifteenth, two
 thousand fifteen, and for bonds  issued  during  the  period  from  July
 fifteenth,  two  thousand fifteen up until and including July fifteenth,
 two thousand eighteen, and for bonds issued during the period from  July
 fifteenth,  two thousand eighteen up until and including July fifteenth,
 two thousand twenty-one, AND FOR BONDS ISSUED  DURING  THE  PERIOD  FROM
 JULY  FIFTEENTH,  TWO  THOUSAND  TWENTY-ONE  UP UNTIL AND INCLUDING JULY
 FIFTEENTH, TWO THOUSAND TWENTY-FOUR, installments  remaining  unpaid  on
 such  bonds may be called for redemption prior to their date of maturity
 in such amounts, at such times in such manner and pursuant to such terms
 as may be determined by the finance  board  of  a  municipality,  school
 district  or  district  corporation at the time of the issuance thereof.
 Whenever any bonds or notes are called for redemption prior to the  date
 of  their  maturity,  interest  shall cease to be paid thereon after the
 date for redemption set forth in such call for redemption. The sum to be
 paid to redeem any unpaid installment prior to its  maturity,  exclusive
 of  the interest accruing on such installment to the date of redemption,
 shall in no event be in excess of the lesser amount of  either  (i)  the
 par  value  of  such installment plus one-half of one per centum of such
 par value for each calendar year or part thereof  elapsing  between  the
 date  for  redemption set forth in such call for redemption and the date
 of maturity of such installment, provided,  however,  that  such  amount
 shall  not exceed one hundred five per centum of such par value, or (ii)
 the par value of such installment plus the total of all unpaid  interest
 on such installment which would have accrued from the date of redemption
 to  the  date of maturity thereof had such installment not been redeemed
 prior to maturity, except that bonds sold  to  the  state  of  New  York
 municipal  bond  bank  agency, which are subject to call as hereinbefore
 authorized, may provide for the payment of a redemption premium  not  to
 exceed five per centum of the par value of the bonds to be called, paya-
 ble  on  the date of the redemption thereof; provided, however, that for
 bonds issued during the one-year period commencing July first,  nineteen

 S. 6883                             3
 
 hundred  eighty-eight,  and  for bonds issued during the one-year period
 commencing July first,  nineteen  hundred  eighty-nine,  and  for  bonds
 issued  during  the  one-year  period  commencing  July  first, nineteen
 hundred  ninety,  and  for  bonds  issued  during  the three-year period
 commencing July first, nineteen hundred ninety-one, and for bonds issued
 during the period from July first, nineteen hundred ninety-four up until
 and including July fifteenth, nineteen  hundred  ninety-seven,  and  for
 bonds  issued  during  the  period from July fifteenth, nineteen hundred
 ninety-seven up until and including July fifteenth,  two  thousand,  and
 for  bonds issued during the period from July fifteenth, two thousand up
 until and including July fifteenth, two thousand three,  and  for  bonds
 issued  during  the  period  from  July fifteenth, two thousand three up
 until and including July fifteenth, two  thousand  six,  and  for  bonds
 issued  during the period from July fifteenth, two thousand six up until
 and including July fifteenth, two thousand nine, and  for  bonds  issued
 during  the  period  from July fifteenth, two thousand nine up until and
 including July fifteenth, two thousand  twelve,  and  for  bonds  issued
 during  the period from July fifteenth, two thousand twelve up until and
 including July fifteenth, two thousand fifteen,  and  for  bonds  issued
 during the period from July fifteenth, two thousand fifteen up until and
 including  July  fifteenth,  two thousand eighteen, and for bonds issued
 during the period from July fifteenth, two thousand  eighteen  up  until
 and  including  July  fifteenth,  two thousand twenty-one, AND FOR BONDS
 ISSUED DURING THE PERIOD FROM JULY FIFTEENTH, TWO THOUSAND TWENTY-ONE UP
 UNTIL AND INCLUDING JULY FIFTEENTH, TWO THOUSAND TWENTY-FOUR, a  munici-
 pality, school district, or district corporation may provide for redemp-
 tion  of  such  bonds  prior to the date of their maturity at a price or
 prices as may be as determined by the issuer of such bonds or  notes  at
 the time of the issuance thereof.
   §  3.  The  opening  paragraph  of paragraph a of section 54.90 of the
 local finance law, as amended by chapter 113 of the  laws  of  2018,  is
 amended to read as follows:
   Whenever  in the judgment of the finance board the interest of a muni-
 cipality would be served thereby, the municipality may  issue  bonds  or
 notes,  on  or  before July fifteenth, two thousand [twenty-one] TWENTY-
 FOUR, with interest rates that vary in  accordance  with  a  formula  or
 procedure  and  are  subject  to a maximum rate of interest set forth or
 referred to in the bonds or notes and may provide  the  holders  thereof
 with  such  rights  to  require  the  municipality  or  other persons to
 purchase such bonds or notes or renewals thereof from  the  proceeds  of
 the  resale  thereof  or  otherwise from time to time prior to the final
 maturity of such bonds or notes as the finance board may  determine  and
 the  municipality  may  resell, at any time prior to final maturity, any
 such bonds or notes acquired as a result of the exercise of such rights;
 provided, however, that at no time shall the total principal  amount  of
 bonds  and notes issued pursuant to this paragraph (other than bonds and
 notes bearing interest at rates and for periods of time that are  speci-
 fied  at issuance) exceed ten percent of the limit prescribed by section
 104.00 of this article.
   § 4. Subdivision 9 of paragraph d  of  section  107.00  of  the  local
 finance  law,  as amended by chapter 113 of the laws of 2018, is amended
 to read as follows:
   9. Notwithstanding any other provision of law, the  financing  by  any
 municipality,  prior  to July fifteenth, two thousand [twenty-one] TWEN-
 TY-FOUR, of any object or purpose which has a period of probable useful-
 ness determined by law, by the issuance of any bonds and notes,  includ-

 S. 6883                             4

 ing  (i)  the  issuance  of  bonds  or notes, to redeem notes previously
 issued for the object or purpose for which the bonds or notes are  being
 issued  or  (ii) the issuance of bonds to refund bonds previously issued
 for the object or purpose for which bonds are being issued.
   § 5. Subdivisions (a) and (e) of section 81 of chapter 413 of the laws
 of  1991,  amending  the  local  finance  law and other laws relating to
 providing relief to local governments for certain mandated programs  and
 services,  as amended by chapter 113 of the laws of 2018, are amended to
 read as follows:
   (a) [section] SECTIONS six, sixteen and seventeen of  this  act  shall
 expire  and  be  deemed  repealed on and after July 15, [2021] 2024, and
 upon such date the amendments  made  to  the  provisions  of  the  local
 finance law by such sections shall also expire and such provisions shall
 revert  to and be read as set out in law on the date immediately preced-
 ing the effective date of such sections six, sixteen  and  seventeen  of
 this act;
   (e)  subdivision  (b)  of section thirty-five of this act shall expire
 and be deemed repealed on and after July 15, [2021] 2024;
   § 6. This act shall take effect immediately.